Is Veritiv (VRTV), Stock Undervalued Right NOW?
The Zacks Rank is a proven ranking that places emphasis on earnings estimates and revisions in order to identify strong stocks. However, we know that investors have their own strategies. We keep this in mind when we search for great companies.
These trends show that value investing is the best way to find solid stocks in any market. Value investors use both fundamental analysis and tried-and-true metrics to locate companies that they feel are undervalued at the current share price.
Investors looking for stocks that have specific characteristics can use our Style Scores system in addition to the Zacks Rank. The system’s “Value” category is where value investors are most interested. Stocks with high Zacks ranks and “A” grades are the best value stocks at this moment.
Investors might be interested in one company: Veritiv (VRTV).. VRTV holds a Zacks Rank number 1 (Strong Buy) as well as a Value grade A.
Investors will also see that VRTV’s PEG ratio is 0.46. This is similar to the P/E ratio. However, the PEG ratio takes into account a company’s expected earnings growth rate. VRTV’s industry has an average PEG value of 0.62. VRTV’s PEG over the last 52 weeks has varied between 0.62 and 0.31 with a median value of 0.49.
Investors should also be aware that VRTV has an P/B ratio 2.46. The P/B ratio is a measure of a stock’s current market value versus its book value. This is the sum of total assets and total liabilities. The company’s P/B is currently solid, compared with the 2.64 industry average. VRTV’s P/B over the past year has varied between 3.52 and 1.99 with a median of 2.64.
The P/S ratio is also used by value investors. The P/S is simply the price divided by the sales. This metric is preferred by some people because it makes it harder to manipulate sales on an income statement. It could also be used as a performance indicator. VRTV’s P/S is 0.22. This compares with the industry’s average P/S 0.47.
These are only a few of the numbers Veritiv considers in its great Value grade. These numbers show that the stock is probably being undervalued right now. We can see that VRTV is a great value stock, given its strong earnings outlook.
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Veritiv Corporation (VRTV) : Free Stock Analysis Report